The logistics industry in India is at a crossroads, where economic growth meets the pressing need for environmental sustainability. Ports, the linchpins of global trade, are critical in this equation, handling a significant portion of the country’s import and export activities. Against this backdrop, the adoption of electric trucks (e-trucks) promises to be a game-changer, offering a sustainable solution to reduce emissions, curb costs and modernize logistics operations. For stakeholders, investors and logistics providers, understanding this transformative potential is imperative.
India’s trucking landscape: Challenges and opportunities
India’s trucking industry is the backbone of its logistics sector, accounting for 64 per cent of freight movement with a massive fleet of 1.47 crore trucks. Despite its critical role in the economy, the sector faces significant challenges that threaten its sustainability and efficiency. High fuel costs, reliance on diesel, and outdated practices inflate operational expenses, while trucks contribute a staggering 41 per cent of CO2 emissions from road transport, making the sector one of the largest polluters. Furthermore, traffic congestion and inefficiencies in logistics operations lead to extended transit times and higher costs. Yet, these challenges present opportunities for innovation, particularly through the integration of electric trucks. With reduced fuel dependency, lower emissions, and cost advantages over the long term, e-trucks emerge as a promising alternative, especially for Port operations.
The global push for electric trucks
Around the world, e-truck adoption is gaining momentum. China has emerged as a leader, achieving a 7 per cent sales penetration for e-trucks in 2023, driven by targeted subsidies and supportive policies. Europe and the United States are also making strides, spurred by stringent emission regulations and advancements in battery technology. Ports such as Long Beach in California and Gothenburg in Sweden have successfully integrated e-trucks into their operations, showcasing their viability and benefits in real-world applications.
The Indian scenario: A nascent yet promising market
India’s journey with e-trucks is still in its early stages. In 2024, the country saw the sale of 6,220 e-trucks, a modest figure compared to the 8.34 lakh trucks sold that year. However, the sector is poised for exponential growth, with projections indicating a compound annual growth rate (CAGR) of over 25 per cent by 2030.
This growth is underpinned by increasing awareness of sustainability, government incentives, and advancements in battery technology. For Ports, the implications are significant, as e-trucks align perfectly with the operational demands and sustainability goals of Port-centric logistics.
E-Trucks in port logistics: Applications and benefits
Ports serve as strategic hubs within India’s logistics network, facilitating a substantial portion of the country’s trade. Integrating electric trucks (e-trucks) into Port operations offers numerous advantages. In drayage operations, e-trucks excel in short-haul movements between Ports, warehouses, and inter-modal hubs, significantly reducing emissions in these hightraffic areas. Within Port premises, e-trucks can efficiently transport goods from ships to storage yards or warehouses, improving operational efficiency and minimizing congestion. Furthermore, e-trucks are well-suited towards comprehensive cargo operations. Speaking on Friday, Vaishnaw stressed the need for a customer-centric approach and a greater contribution to railway cargo transport.
for handling various cargo types, including containers, bulk materials, and hazardous chemicals due to their advanced control systems and lower environmental impact.
Operational characteristics of portrelated trucks
Port logistics operations present a compelling case for the adoption of electric trucks. A significant portion of trucks operating within Port ecosystems are owned by fleet aggregators (55 per cent), followed by companies (30 per cent) and individual operators (15 per cent). This ownership structure facilitates the transition to electric vehicles, as fleet aggregators and companies are better positioned to invest in and manage charging infrastructure and vehicle maintenance. Furthermore, the typical daily mileage for Port-related trucking activities, ranging between 90 and 250 kilometres, aligns well with the current range capabilities of most modern electric trucks. This operational characteristic further strengthens the case for e-truck adoption within this sector, contributing to reduced emissions and improved sustainability within the Port logistics ecosystem.
Challenges to e-truck adoption
Despite their potential environmental and economic benefits, the widespread adoption of electric trucks in India faces several significant barriers. A primary obstacle is the high upfront cost, typically 2-3 times higher than diesel counterparts. For instance, an 18.5-tonne e-truck can cost ₹105 lakh, compared to ₹31 lakh for a diesel equivalent, posing a major hurdle for many operators. Furthermore, the lack of adequate charging infrastructure in and around Port areas limits the operational feasibility of e-trucks, hindering their widespread deployment. Range limitations of current e-trucks typically 100-300 kms, while sufficient for short-haul operations, may not be adequate for longer routes, restricting their operational flexibility. Finally, the increased electricity demand from a large-scale transition to e-trucks could strain India’s existing power grid, necessitating substantial infrastructure upgrades to ensure reliable and sustainable energy supply.
Support systems for e-truck deployment
The government is actively facilitating the adoption of electric trucks through various initiatives. These include offering subsidies and tax waivers to reduce upfront costs, investing in the establishment of charging stations at key Ports and along major freight corridors, and providing priority lending support for e-truck purchases and associated infrastructure development. Concurrently, the private sector is playing a crucial role. Original equipment manufacturers (OEMs) like Tata Motors, Ashok Leyland, and IPLTech are developing e-trucks tailored to Indian conditions. Major companies like Amazon, Flipkart and CONCOR are integrating e-trucks into their fleets, signalling a significant shift towards sustainable practices. Building a robust charging network is critical for scaling e-truck adoption. Key initiatives focus on installing fast chargers at every 100 kilometres along major freight corridors, establishing dedicated charging stations at Ports.
and logistics hubs, and encouraging private investments through incentives and public-private partnerships.
Opportunities for stakeholders
The electrification of Port logistics presents a significant opportunity for various stakeholders. Original Equipment Manufacturers (OEMs) can capitalize on this by developing cost-effective e-truck models with enhanced range and payload capacities, catering to the specific demands of Port operations. Port authorities can play a crucial role by establishing robust charging infrastructure within Port premises and incentivizing e-truck adoption to attract environmentally conscious logistics partners. Logistics providers stand to benefit significantly by transitioning to e-trucks, achieving cost savings and meeting their sustainability targets. Finally, investors can capitalize on the growing demand for green logistics solutions by funding innovative projects related to e-truck development, charging infrastructure, and related technologies. The case for port electrification India’s maritime sector plays a crucial role in the country’s economic growth, with Indian ports handling nearly 95% of India’s trade by volume. However, ports are also major contributors to carbon emissions, air pollution, and noise pollution. As India pushes toward its net-zero emissions target by 2070, electrifying port operations through the adoption of electric vehicles (EVs) offers a transformative opportunity.
Opportunities for EVs at Indian Ports
- Reducing emissions & aligning with sustainability goals Port electrification & net-zero Goals: India has committed to reducing its emissions intensity by 45% by 2030 under the Paris Agreement. Electrifying trucks, cargo handling equipment, terminal tractors, and port logistics vehicles will help achieve these targets.
Reduction in air pollution: Indian ports, especially those in Mumbai, Chennai, and Visakhapatnam, suffer from severe air quality deterioration due to diesel-powered equipment. Replacing diesel with EVs can significantly reduce NOx, PM2.5, and CO₂ emissions.
- Economic & operational cost savings
Lower fuel costs: Electricity is cheaper than diesel, and as India increases its renewable energy capacity (solar & wind), the cost of charging EVs will decline further.
Lower maintenance costs: EVs have fewer moving parts than diesel vehicles, leading to lower maintenance expenses over their lifespan.
Incentives for electrification: The Indian government offers subsidies & incentives through programs like FAME II (Faster Adoption and Manufacturing of Electric Vehicles) and the National Green Hydrogen Mission, which could support port electrification under the Sagarmala Programme, which includes automation and smart port technologies. EV adoption aligns with these efforts by enabling smart charging and fleet management solutions.
- Enhancing port efficiency & future-proofing Automation & digitalization: Indian ports are undergoing modernization
Integration with renewable energy: Many ports, such as Jawaharlal Nehru Port (JNPT) and Cochin Port, are investing in solar and wind energy projects. EV charging stations can be powered by on-site renewable energy, further reducing reliance on fossil fuels.
Green charging
Electric mobility powered by renewable energy is emerging as a transformative force in addressing the dual challenges of environmental degradation and fossil fuel dependence. By powering Electric Vehicles (EVs) with cleaner energy, India can significantly reduce its carbon emissions. One of the most critical aspects of integrating renewable energy into electric mobility is the development of green charging infrastructure. Solar-powered EV charging stations not only mitigate grid dependency but also ensure that EVs are charged with cleaner energy. We need a transformative project aimed at developing a comprehensive charging infrastructure for electric vehicles.
EV financing
Additionally, while there are various government incentives and rebates available, aimed at reducing the financial burden of purchasing an EV, these measures may not fully offer the high purchase prices, making affordability a critical issue that needs to be addressed for broader adoption of electric vehicles. India’s EV financing system still lags behind global standards. The financing penetration remains low at 10-15 per cent compared to 40 per cent in developed countries.
Future outlook: A sustainable logistics ecosystem
By 2030, advancements in battery technology and falling costs, coupled with supportive government policies, are poised to significantly strengthen the proposition for e-trucks within India’s logistics sector. Key projections include a substantial reduction in battery costs, with prices expected to decline from US$115/kWh in 2024 to US$80/kWh by 2026, making e-trucks more financially viable. This, combined with a robust ecosystem of manufacturers, policymakers, and users, is expected to fuel exponential growth in e-truck sales. For Ports, this transition promises substantial benefits, including reduced emissions, significant cost savings, and enhanced operational efficiency. As global trade continues to expand, the adoption of e-trucks will not only modernize India’s logistics sector but also firmly align the country with global sustainability goals. Electric trucks are poised to revolutionize India’s logistics sector, particularly in Port-centric operations. By addressing environmental concerns, reducing costs, and enhancing efficiency, e-trucks represent a sustainable solution for the future. However, the transition demands collective effort from policymakers, manufacturers, port authorities, and logistics providers. With the right mix of innovation, infrastructure development and collaborative efforts, the electrification of logistics is no longer a distant vision but an achievable reality. For Port users, stakeholders and investors, embracing this transformation is not just an opportunity but a necessity for a sustainable and competitive future.
Conclusion
The shift to electric vehicles at Indian ports presents a transformative opportunity to reduce carbon emissions, cut fuel costs, and improve air quality. While high upfront costs, infrastructure gaps, and grid reliability remain challenges, strategic investments, policy support, and renewable integration can accelerate the transition. With India’s ambitious clean energy targets, growing EV ecosystem, and port modernization programs, the future of electrified, sustainable ports is within reach.
